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JC Maldonado, III, JD_CEO “creating opportunity and growth with ease!!!” | |A Full Service Business Development Firm

6 Ways to Increase Sales I.



Customer Acquisition_This method of growing a business is the process of generating leads via proactive marketing efforts which can include internet marketing, direct mail, telemarketing, the efforts of paid salespeople, seminars, print media advertising, and/or radio. For this method of business growth to work, it requires a consistent commitment and investment to make it work. The advantage of customer acquisition is the ability for a business to control its efforts on an ongoing basis. Further, it’s only purpose is to get a new customer who will at some point buy often and buy in bulk. Once the acquired customer is satisfied, this customer can also become a source of referrals which can increase the customer’s lifetime value. As a rule of dumb, according to Jay Conrad Levinson, the author of Gorilla Marketing, a prospect needs to recognize a business’s marketing message 9 times before developing the confidence in the business which is marketing its services. However, it takes 3 marketing messages, before a prospect recognizes a communication. Hence, for a customer to buy, that customer may have to receive up to 27 marketing messages before buying. Further, as a company we have observed that the Internet is the best way to attract the local consumer market, while a Direct Marketing approach is most effective to sell to business entities. Increasing the amount of Transactions Made by Current Customer Base_If a business can get its customers to buy more often, it can increase sales. This can be achieved by consistent communication with current customers. Most businesses fail to communicate with its customer base outside the scope of transaction situations. Further, many businesses fail to develop additional product offerings that would entice to buy more often. Some examples of communication methods to existing customers would be an e-newsletter, a print newsletter, a customer anniversary card to demonstrate appreciation, a letter inviting the customer to do more business, a note recognizing special occasions such as wedding anniversaries, birthdays, special events revolving the customer’s children, attending funerals and weddings, a customer satisfaction survey, an endorsement of a strategic partner’s products and services, and/or a seminar educating the client about your business’s products and services. Also, if you are in a service business, it may pay to meet your client once per quarter or twice per year simply to discuss the client’s progress. You will be amazed what these kinds of meetings can lead to. Increasing the Size of Transactions Made by Current Customer Base_This strategy is geared towards getting your customers to spend more. A simple example would be a book store. A customer can walk in and spend $25 to buy a book about how to increase sales in a business. That same book store can turn around and sell to the same customer 5 books addressing the same topic of selling with discounts on the original retail price. In fact books can be packaged in a basket and sold as one product. If each book sells for $15, that book store just generated $75 in sales as opposed to $25. Increasing transaction size is all about selling customers packages of

11 Sterling Place, FL2 |Edgewater, NJ| 07020| T-(201) 496-6931| F-(201) 353-2351 | |A Full Service Business Development Firm




products and services. If you are strictly selling your time, this method of growth is difficult to achieve. Customer Referrals_There is nothing like a customer referral. It is easiest way to sell. However, most businesses fail to ask their customer base for referrals. Instead they wait for referrals. One way to get referrals is to simply ask. Ask a customer “Do you know 2 people who may have a need for my product or service.� After, ask them to give you their name and number and permission to call. You also can get referral letters from your clients giving you a testimonial. The best way to execute this strategy is to write the letter yourself and have your customers sign the letters. One way to obligate your customers to give you referrals is to give free ongoing service. This type of service can include a free subscription to a newsletter you publish, a free educational webinar, a free seminar, free ongoing consultations, free ongoing estimates, a free ongoing product sample, and/or a free analysis of some type. You can tell your customer that the service you are giving is free. However, what you expect from them is referrals. Free product/service offerings can also lead to obtaining information that can help you increase the amount and size of the transactions consummated by the customer as well. Outside Referrals_Receiving referrals from those who are not your customers requires a networking effort on your part. Networking is about connecting with people who can potentially refer you business. It is a highly effective way to generate sales but requires a long term outlook. You have to be careful who you network with and the people you network must be able to deliver products and services that you feel comfortable recommending. Also, if you have a hot product or service, developing a formal compensation program to those who refer business to you can give incentive to be referred. Finally, giving before receiving is important, especially if you sell a product or service that is perceived to be a commodity. The principle of giving before receiving is especially important if you are networking with business people who are more established and successful than you. Business Acquisitions_This is the quickest most effective way to grow an existing business. It will automatically increase sales, add personnel, lower overhead, increase profitability and increase the opportunity for customer referrals and up-selling. However, there are two caveats. First, you must know what you are doing. The only way to know what you are doing is to do your homework and surround yourself with a team of advisors that include an attorney, a CPA, a professional M&A firm, and possibly a business coach or consultant that can help you with the post transaction integration. Second, your current business must be able to handle the growth. You must have the proper business systems and capitalization in place in order to handle the potential growth a business acquisition can create. Finally, a business acquisition can serve as an excellent entry into business. According to the Department of Commerce, while 90% of all businesses fail within the first 5 years, 80% of businesses acquired are still in business with the same owner who made the initial acquisition five years after the acquisition took place.

11 Sterling Place, FL2 |Edgewater, NJ| 07020| T-(201) 496-6931| F-(201) 353-2351 | |A Full Service Business Development Firm

Final Key Points 1) The key to marketing successfully is to be committed to marketing, to view marketing as an investment, and to understand that marketing requires patience. 2) To accelerate the growth of a business or a professional practice, one should use all 6 strategies simultaneously. If not, your results will be mediocre, especially in this economic environment.

11 Sterling Place, FL2 |Edgewater, NJ| 07020| T-(201) 496-6931| F-(201) 353-2351

6 Ways To Increase Sales  

This short handout contains six (6) items that can increase the sales of your business when implemented effectively.